Silver prices rose slightly on Tuesday in both local and global markets, according to a report by the Safe Haven Center, amid the continued impact of increased margin requirements on the Chicago Mercantile Exchange (CME) during a season typically marked by lower liquidity and portfolio adjustments.
According to the report, the price of 800-grade silver reached 100 EGP per gram, 925-grade silver 116 EGP, and 999-grade silver around 125 EGP, while the silver pound remained stable at 928 EGP. On the global level, the ounce rose from $75 to $67.31.
The report noted that silver prices experienced a sharp increase of nearly 150% in 2025, driven by strong fundamental factors, as noted by Societe Generale analysts. Prices were also expected to rise during the holiday season, with a 7% increase forecasted before and after the 2026 New Year.
Holiday Volatility and CME Margin Adjustments
The year-end period typically sees high volatility due to lower liquidity and portfolio adjustments. Silver prices notably dropped on Monday after initial margin requirements for silver contracts jumped by $3,000 per ounce—from $22,000 to $25,000—followed by a 10% increase on December 12, reaching $22,000.
On Tuesday morning, silver futures rose by around 7%, continuing the price fluctuations observed throughout 2025, with the ounce reaching a historic high of $80, before retreating by 8.7% in the largest daily decline since February 2021.
Key Drivers Behind the Price Surge
Silver and gold had an exceptional year, fueled by escalating geopolitical tensions and their role as hedges against inflation, coupled with a weaker U.S. dollar that made precious metals more attractive to foreign buyers.
Expectations of interest rate cuts and concerns over supply constraints also contributed to price increases. Elon Musk, CEO of Tesla, warned over the weekend that China’s restrictions on silver exports, set to take effect on January 1, 2026, “are not in our favor,” noting the metal’s critical role in industrial applications, solar panels, data centers, and electric vehicles.
China Implements Strict Export Controls
In a strategic move to strengthen its control over industrial resources, China’s Ministry of Commerce announced the official list of companies allowed to export silver in 2026–2027, permitting only 44 companies, a slight increase from the previous period.
Despite this small numerical increase, the export licenses and qualification criteria—including production requirements and high financial capacity—effectively concentrate global silver flows in the hands of major companies, limiting small and medium-sized enterprises from participating in international markets. This system is expected to tighten global supply and push spot market prices upward.
The new system will take effect on January 1, 2026, replacing the previous open-export regime, reflecting Beijing’s broader strategy to ensure domestic supply, particularly in the solar energy and advanced technology sectors, where silver is a critical component.
Record Prices and Historic Gains
Global markets responded swiftly, with silver approaching $80 per ounce for the first time ever, achieving annual gains exceeding 160%, while gold also hit a record of $4,555 per ounce. This surge was supported by expectations of U.S. interest rate cuts and increased demand for safe-haven assets amid geopolitical tensions in regions such as Nigeria and Venezuela.
Experts agreed that the Chinese decision will create a significant gap in the global silver supply, exacerbating existing shortages due to rising industrial demand.
Future Outlook
With the new licensing system in effect, market observers expect upward pressure on prices throughout 2026, potentially pushing silver beyond $100 per ounce. This move is seen as a clear message from Beijing to secure its strategic resources amid a heated global race for critical materials driving future technologies.
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